from my understanding, e-gold is like paypal in the fact that you can transfer money from one person to another. Unlike paypal, egold is actually backed by real gold whereas paypal is just virtual currency. In other words, if you have $25 in e-gold, you can choose to have egold ship you $25 worth of gold. Now, the price of gold changes, so if you like, it is possible to merchant it much like you would a stock.
I am sure there is more to this, but that is just my understanding of it.
Oh yeah, a lot of frauders choose to receive and send money via egold.
e-gold itself is usually safe, but if you are planning on using it for hosting payment be very cautious. The transactions are safe, but the type of people typically using e-gold are not the most legitimate people in the world...
As others have said - you need to be alert as to who is paying you by e-gold
- it's not that you wont get paid - the transactions cannot be reversed - but sometimes the people that want to pay by e-gold have slightly dubious uses of your service in mind
We accept e-gold only by pre-arrangement, when we took it online, we found a lot of spammers signed up for the cheapest hosting plans for 1 month, and sent out their [email protected]
Several of our colo clients pay by e-gold as they accept it for their services, and the only real issue we have ever had is time taken to convert it back to real currency to bank